QUESTION 5 What are two sources of capital for business entities? a. retained earnings and equity O b. debt and retained earnings C. debt and equity d. none of the above QUESTION 6 The cost of a project is $50,000 and it generates cash inflows of $20,000, $10,000, $10,000 and $15,000 in four years. What is the net present value using a discount rate of 8%? a. $4000 N b. -$3944 O c. $5000 O d. -$2500 QUESTION 7 You must know the discount rate of an investment project to compute its a. IRR b. NPV and Discounted payback period c. intrinsic value d. capital asset pricing model